Advantage of Bill of Exchange

Companies have used Bills of Exchange for many years. Their longevity is due to the advantages they provide in a trading transaction.

1.     A Bill of Exchange facilitates the granting of trade credit to a customer.
2.     A Bill of Exchange provides a legal acknowledgement that a debt exists.
3.     It will provide the seller with access to finance.
4.     It will provide easy access to the legal systems in the event of non-payment.
5.     The following are the advantages of a bill of exchanges:
6.     It's a legal proof of debt.
7.     It's a convenient method for the transfer of debt
8.     A creditor will sue on the bill itself
9.     It's a negotiable instrument and may be transferred for settlement of one's debt without difficulty.
10.     It can be paid before due date by discounting.
11.     A debtor enjoys the benefit of full period of credit.
12.     It affords an ease means that of transmitting money from one place to another.